Alderney

Alderney is one of the UK's white-listed remote gambling jurisdictions. Although Alderney licenses gambling operators, the servers are actually located in Guernsey.

Companies established for the purposes of holding an Alderney eGambling license may qualify for tax-exempt status, in which case they do not pay income tax but pay a minimal nonprofit related fixed annual fee instead. There is no VAT or other sales tax applicable on Alderney. There is no tax or other duties payable on gambling operations.

The Alderney Gambling Control Commission voted on February 28, 2005 to allow a free market approach towards e-gambling. This decision allows the jurisdiction's licensees to accept bets from players in all other countries, including the United States.

In July 2006, the Commission introduced new provisions to its legislative framework. The Commission created the first eGambling license, which encompasses multiple gaming types: casino, poker, sportsbook, or lottery. Category 1 eGambling License fees range from £35,000 for a licensee with no previous licensable activity in Alderney for its first year up to £140,000 based on annualized net gaming yields. Category 2 Annual license fees vary on the type of license and range from £10,000 to £35,000. The applicant must pay the cost of all investigations required for the issuance of a license, and a deposit of £10,000 is required at the time of application. Compliance testing is also required for all gaming systems and is the responsibility of the licensee.

The Commission also introduced a Restricted Use eGambling license in July 2006 allowing operators to operate a mirrored site from within the jurisdiction while their primary site operates elsewhere. Operators may utilize their equipment hosted in Alderney whenever required and pay a daily fee. If a Restricted Use licensee wishes to operate from Alderney for an extended period of time, it may switch to an eGambling license.

Effective as of May 1, 2008, an amendment was made to the Alderney eGambling Regulations influencing advertising conditions. One stipulation the amendment makes is that an eGambling licensee’s advertising must comply with the advertising laws of the target market’s jurisdiction.

As of December 31, 2009, there were 44 full licenses issued: 23 holders of Category 1 and 2 licenses, 18 holders of a Category 1 license, and three holders of a Category 2 license. During the year 12 eGambling licenses were surrendered or lapsed.

On January 1, 2010, Alderney overhauled its online gaming licensing framework and implemented a system that allows operators to apply for only those parts that they require to operate their business model. The new licensing structure distinguishes between business-to-customer operators and business-to-business operators.

The new licensing system in Alderney is classified into several categories of licenses.

Category 1 is a standard business-to-player license. The operator is required to have a registered company in Alderney and the license can be granted in as little as four weeks. The tax base for all Category 1 licensees is the annualized Net Gaming Yield (NGY). Fees range from GBP 35,000 per annum with an annual NGY of up to GBP 1 million all the way up to GBP 140,000 per annum with an annual NGY over GBP 7.5 million.

Category 2 is a hosting certificate authorizing the operational management of a gambling platform within an approved hosting center. A licensee can be a resident or nonresident.

Resident licenses can only be held by companies registered in Alderney; nonresident licensees can accept players from Alderney without the need to warn them of changing jurisdiction. Both resident and nonresident licensees pay a fixed annual fee of GBP 35,000. Hosting certificates cost GBP 10,000 per annum.

A Restricted Use license, now known as a temporary license, is a short-term license for operators wanting a second site in Alderney. Restricted licensees can operate under their existing non-Alderney system for a period of 30 consecutive days, or 60 days in any six-month period. The Restricted Use license fee is GBP 10,000 per annum plus a GBP 200 daily fee when activated.

Gambling software suppliers are required to obtain associate certificates and to have their software tested and approved against technical standards in Alderney. The company does not have to be registered in Alderney. Only one license is required regardless of the number of games supplied and approved. The Software Supplier Certificate license fee is GBP 10,000 per annum.

The Alderney Gambling Control Commission (AGCC) and Kahnawake's Gaming Commission (KGC) will interact with one another on matters of common interest in regards to past, existing, and prospective licensees for the purpose of ensuring effective regulation between both jurisdictions. The KGC and AGCC have agreed that the specific content of the agreement will remain confidential.

The AGCC entered into a bilateral cooperation agreement, also known as a Memorandum of Understanding (MoU), with the Danish Gambling Authority to establish a formal basis for cooperation and information sharing between them which will come into effect upon the implementation of the Danish Gaming Act. In January 2011, the AGCC entered into a similar agreement with the Nevada Gaming Board which focuses on areas of investigation, compliance, and the development of technical standards, and in early 2012 with regulators in Ontario, Canada.

Per the AGCC 2011 Annual Report, all active licensees are inspected within one year of the approved start of their live operations and annually thereafter. All inspections include a careful examination of a licensee's AML/CFT procedures to ensure they are robust. Each inspection is preceded by a "mystery shopping exercise" testing the site from the perspective of a player which includes reviews of player registration, payment systems, and player due diligence as well as other controls used to prevent money laundering and to combat terrorist financing. All licensees are required to state clearly on their sites that they are licensed and regulated in Alderney. The Alderney logo on a licensee site is seen as a guarantee of secure, safe, well-regulated eGambling and can only be displayed by fully licensed organizations.

In July 2012, the AGCC amended its regulations for eGaming licensees or an associate of an eGambling licensee. The Alderney eGambling (Amendment) Regulations, 2012 states licensed companies must, at all times, hold customer deposits separately in a bank account which exists solely for the purpose of holding, and hold only, funds standing to the credit of the licensees' customers.